Monday 18 June 2018 C002D5556 BUSINESS DAY 33
REAL SECTOR WATCH
FG woos investors to export processing zones
… as NACC sees free zones as preferred investment destination
ODINAKA ANUDU
The Nigeria Export Processing Zones Authority( NEPZA) is wooing deep-pocket investors with attractive incentives, offering them the opportunity to repatriate foreign capital investment in the zones.
Speaking at a breakfast meeting organised by the Nigerian- American Chamber of Commerce( NACC) in Lagos, Emmanuel Jime, managing director of NEP- ZA, urged investors to put their money in export processing zones as 100 percent of foreign ownership of business is allowable there.
“ Goods manufactured or produced in the zones shall be imported into the Customs territory irrespective of whether the goods are prohibited or not upon payment of the appropriate duty,” said Jime, who was represented by an official of the agency, Richard Obianu.
“ However, prohibited goods that have been assembled or packaged without the 35 percent local content value addition requirement may not be allowed into the Customs territory,” he said.
NEPZA is a federal agency that manages free zones and industrial parks across the country. Free zones are designated areas for duty-free import or manufacture of raw materials, machines, semifinished, processed and finished goods. They are also called industrial parks.
According to Jime, up to 100
The Senate Committee on Industry has criticised the absence of the Standards Organisation of Nigeria( SON) at seaports, stressing that this is not in line with global best practices.
According to the law makers, the directive ordering SON out of the port is a violation of the Act establishing the standards body, stressing that the law specifies SON to be at the points of entry to monitor goods coming into the shores of the country.
Sam Egwu, chairman, Senate Committee on Industry, stated this during an oversight function to SON offices and laboratories in Lagos.
“ Their absence at the ports accounts for the influx of substandard goods into the country. The agency that has the duty to check against the influx of these goods is not allowed to operate at the ports. We feel this is an aberration. It is not right; it is also against the law and
L-R: Joyce Akpata, director-general, Nigerian-American Chamber of Commerce( NACC); Debo Lukanmbi, manager, Social Performance and Planning, Chevron Nigeria; Oluwatoyin Akomolafe, president, NACC and Richard E. Obianu, assistant general manager, Nigeria Export Processing Zones Authority at NACC’ s June Breakfast Meeting held in Lagos on June 13, 2018
percent of goods may be exported into the Nigerian Customs territory against a valid license / permit, and on payment of appropriate duties, subject to extant fiscal guidelines of government.
He stated that there is no import or export license required to operate in the free zones, adding that legislative provisions pertaining to taxes, levies, duties and foreign exchange regulations do not apply within the zones.
Nigeria has 37 free zones / industrial parks, which include Lekki Free Zone, Calabar Free Zone,
Kano Free Zone, Snake Island, Lagos Deep Offshore Logistics Base( LADOL), and Eko Atlantic City, among others. However, only 12 are fully operational. Those that are not in operation are mostly owned by state governments.
According to Jime, import duty on goods manufactured, processed or assembled in the zones and exported into the customs territory would be at the rate applicable to raw materials( in the state in which they are originally introduced into the zones) except where the raw materials are local
SON’ s absence at ports accounts for influx of substandard goods— Senate
we are going to take it up.
“ I am sure the appropriate authority of the highest level might not be aware of this. SON is vital to safeguarding the nation from these substandard goods. Take for example, tyres today, we have so many fake tyres plying the Nigerian roads and this is one of the reasons why we have so many accidents on our roads because these products enter our markets without proper monitoring.”
He rated the agency high for the judicious use of its 2017 budgetary allocation, stating that the commendation was a call to duty for SON not to relent on its efforts in its quest to sanitise the Nigerian markets.
“ We have seen other laboratories in China, Kenya and Tanzania. I think what we are seeing here is something we are proud of. The state-of-the-art laboratories being installed here are commendable,” he added.
Jibrin Barau, member of committee, said the Senate would do everything possible to enable SON discharge its responsibility.
Barau said the impact of SON would be vital for the growth of the country’ s local industries.
“ Undue advantages give fake products edge over quality products and it is a very serious matter where only a body like SON can help to address. I think they are doing well. I am happy that they are getting facilities to make them operational and more effective in to the customs territory and in which event the duty applicable shall be zero-rated.
He assured investors that their cost of doing business would reduce by at least 10 percent if they choose to invest in the zones, adding that they only need to pay $ 3000 and can acquire Free Zone Developer’ s License( own a free zone) or Free Zone Enterprise License( play in an existing free zone).
On his part, Oluwatoyin Akomolafe, president, Nigerian- American Chamber of Com-
the country.
“ It is really surprising to see that SON is absent at the ports in view of the functions they undertake in the laws establishing the agency. It is clear that their absence is against international best practices and no country allows it borders to be open to all sorts of goods without checking them.”
Earlier, Osita Aboloma, director general, SON, had expressed his gratitude to the committee, pointing out that SON has made steady merce, stated that a free trade zone is a preferred place for investment because of its friendly business law and regulations deliberately put in place by governments to boost manufacturing activities and promote export of finished products.
“ The idea of free trade zone is a well-developed system of attracting foreign direct investment( FDI) into a country that has been in practice in advance economies around the world and was introduced into Nigeria with the establishment of NEPZA, which has led to the creation of different free trade zones across the country,” Akomolafe said.
He pointed out that the idea of free trade zone is meant to encourage world trade, limit trade restriction and promote employment.
“ It has often been said that the current economic climate presents a great opportunity for the restructuring of the economy. I cannot agree more. The country has had opportunities in the past but they were wasted by the very people who should ensure compliance.
“ It is my hope that at this critical junction of our national life, certain fundamentals will be put in place; some of these would include provision of critical infrastructure like the establishment and functioning of free trade zones. This will ultimately lead to a boost in industrialisation which will bring about job creation, skills upgrade, promotion of exports and economic development,” he added.
progress over the years under the leadership of the committee.
“ I am also proud to tell the world that the issue of possession and co-ownership of the building where our operational office in Lekki is situated has been resolved in favour of SON due to your able leadership,” Aboloma said.
The Senate Committee were taken to SON’ s one-stop office in Apapa and its multi-billion laboratory complex in Ogba, expected to have about 38 laboratories dedicated for testing life endangering items and food.
“ We are ready to take up the challenges that come with standardisation and quality assurance. We have capacity for infinite possibilities. Our laboratories are stateof-the-art; our personnel are world class and competitive with other global standards bodies. We still need your continuous guidance and support for us to stand out among other regulatory agencies,” Aboloma assured.